Churchill Downs, a company linked to Ho Chi Minh City-based Vietnam Trade Alliance, is acquiring Nasdaq-listed Stanley Furniture in a cash-and-note transaction.

Nearly all of the furniture producer’s assets will be transferred to the buyer for $16.1 million, including $11.5 million in cash and a $4.6-million subordinated secured promissory note, the company said in a statement.

Following the deal, Stanley Furniture will retain certain assets valued at $1.5 million and retain a 5 per cent stake in the new company under Churchill Downs. An amount of $750,000 has been deposited by the buyer.

The sale is expected to be closed in the first quarter of 2018.

“The company does not intend to liquidate following the closing of the transaction,” the loss-making woodwork firm, adding that it will use part of the cash to acquire non-furniture related assets.

Churchill Downs was founded by Walter Blocker, who is chairman of Vietnam Trade Alliance, a group of companies providing fast moving consumer goods and material distribution across the Southeast Asian country.

Blocker has been a resident of Vietnam since 1995 and has served three terms as chairman of the American Chamber of Commerce (AmCham) in Vietnam.

“Over the past 20 years, he founded several business units encompassing industrial scale milk, juice, and tea production, nationwide warehousing and distribution, brand management, and general asset management,” AmCham said in a statement.

Share this article